NTPC hits all-time high after arm files draft papers for Rs 10,000-cr IPO

NTPC in focus: Share of the state-owned NTPC jumped as much as 4.34 per cent to hit a fresh all-time high of Rs 431.85 per share on Thursday, September 19, 2024. Notably, NTPC is the top gainer on both NSE and BSE.

The surge in the NTPC share price came after the company filed Initial Public Offering (IPO) papers for its green energy arm, NTPC Green Energy Limited (NGEL).

The company plans to raise close to $1.2 billion or approximately Rs 10,000 crore through the public issue of NGEL.

NTPC launched NGEL in 2021 as the dedicated arm for its green energy and energy transition projects. The company chose to go public after efforts to find a strategic investor failed due to below-optimum valuations offered by foreign investors.

Apart from solar and wind power projects, NTPC is looking to invest in green hydrogen and green methanol—cleaner fuels that are manufactured at units powered by renewable energy.

Last month, NTPC announced that it has received shareholders' approval to raise up to Rs 12,000 crore through issuance of non-convertible debentures (NCDs) on a private placement basis. "All resolutions proposed at the 48th Annual General Meeting were passed with requisite majority," the company said in a BSE filing.

Established in 1975, NTPC Limited (National Thermal Power Corporation) is India's largest power utility company, engaged in diverse activities including power generation from coal, gas, hydro, wind, and solar sources across 55 power stations. 

The company operates 24 coal, 7 combined cycle gas and liquid fuel, 2 hydro, 1 wind turbine, and 11 solar projects. 

NTPC is actively expanding its renewable energy portfolio, focusing on green hydrogen, waste-to-energy, battery storage, and nuclear energy, with a goal of achieving 50 per cent non-fossil-based capacity by 2032. 

Additionally, NTPC is involved in power trading and distribution and has robust corporate social responsibility initiatives, including comprehensive Rehabilitation & Resettlement policies. In May 2010, it was conferred Maharatna status by the Indian government, making it one of only four companies to hold this distinction. 

At 10:10 AM, shares of NTPC were trading 3.53 per cent higher at Rs 428.45 per share. In comparison, BSE Sensex was trading 0.70 per cent higher at 83,528.50 levels.